US History Business Cycle – Flashcards
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Business cycle?
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The periodic but irregular up-and-down movements in economic activity, measured by fluctuations in real GDP and other macroeconomic variables.
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What is a contraction?
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A slowdown in the pace of economic activity.
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What is a trough?
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The lower turning point of a business cycle, where a contraction turns into an expansion.
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What is an expansion?
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A speedup in the pace of economic activity.
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What is a peak?
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The upper turning of a business cycle.
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When does a recession occur?
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If the contraction is severe enough
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What is a depression?
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A deep trough
